In a statement on the Athletic Bilbao website, the club announced: "The Athletic Club wishes to communicate that this week it has rejected an offer from Manchester United FC estimated at 36 million Euros (£28.8m) to transfer the federal and economic rights of player Ander Herrera."

Louis van Gaal, who is due to take over at Old Trafford after the World Cup wants to make the 24 year-old Spaniard his first acquisition as he seeks to rebuild the side that struggled under David Moyes last season.

A deal was expected to be completed this week after the player agreed terms with the Red Devils.

The versatile midfielder was reported to have agreed a four-year deal worth around £2.4m a year according Spanish newspaper, Marca.

Herrera scored five goals and contributed five assists as Athletic qualified for the Champions League last season, finishing fourth in La Liga.

United had attempted to bring in the former Spain Under-21 international last August but their attempts descended into farce on transfer deadline day.

Reports emerged of three people, said to be representing United, managing to get into Spanish league headquarters for discussions about the proposed switch and then leaving an hour later, apparently unable to complete the paperwork required to finalise the deal.

It subsequently transpired that United, who dealt directly with Athletic, knew nothing of the trio's existence. Negotiations between the two clubs collapsed anyway, with then United manager David Moyes believing the buy-out clause in Herrera's contract was too high.

United have now returned for the former Real Zaragoza player, who joined Athletic in 2011, but have been unable to persuade Athletic to part with Herrera yet.